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Tue, 08 Sep 2026

Tue, 08 Sep 2026 Canada braces for prolonged trade war as counter-tariffs on US take effect

It is the latest escalation since trade talks collapsed in late August, with US officials threatening to hit back if Canada’s counter-tariffs are implemented.

* Canada's retaliatory tariffs on US goods have come into effect, with no sign of a trade deal in sight.
* The tariffs will apply to nearly C$28bn ($20bn) worth of American products, including steel, furniture, cotton T-shirts, and fresh fish (although lobster was later removed from the list).
* The counter-tariffs are as high as 50% and are in addition to existing retaliatory taxes on non-compliant US cars and trucks.
* Prime Minister Mark Carney said that Canada is still seeking a "durable" deal with the US, but no talks have been held since August.
* US trade representative Jamieson Greer accused Canada of turning down a good deal and hinted at potential US retaliation.
* President Donald Trump threatened to halt all business with Bombardier unless it moved its manufacturing south.
* The tariffs will raise prices for consumers in both countries, particularly on everyday goods like clothing, food, and furniture.
* Canadian businesses are preparing for the trade dispute to last and have urged the government to take a surgical approach to retaliation.